In the Utility Maximising Model, Consumer Preferences Are Assumed to Be

question 185

Multiple Choice

In the utility maximising model, consumer preferences are assumed to be transitive. What does this mean?

• A) that consumers prefer more of a good to less
• B) that consumers have the freedom to change their preferences from time to time
• C) that consumers have preferences that are relatively consistent in the time period under consideration
• D) that consumers go through cycles in their consumption behaviour

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Definitions:

Diseases

Conditions that impair normal body functions and are characterized by specific symptoms and signs.

Quantity

The quantity of a substance or abstract item that does not need a measurement unit to be quantified.

Quality

An attribute or characteristic that determines the degree of excellence or superiority of something.

Quantity

A property that describes the numerical extent or amount of something.